At a time of growing political divides, bipartisanship was on full display last month in Kearny – as Gov. Phil Murphy signed a bill aimed at incentivizing manufacturing in the Garden State. Assembly Bill 5687/Senate Bill 4407, passed alongside the Fiscal Year 2026 budget earlier this summer, established the Next New Jersey Manufacturing Program — a $500 million tax credit program.

“This legislation marks the single largest investment in manufacturing in New Jersey’s history – $500 million in tax credits to fuel local investment and long-term job creation,” Murphy said at the Aug. 13 signing ceremony. The event took place at MAC Products Inc. in Kearny, a third-generation, family-owned business that designs and manufactures products for electrical infrastructure throughout North America.

“And I want to repeat that this has, from moment one, been a bipartisan, all-in effort,” Murphy said. “With these new businesses and jobs, we will supercharge our state’s leadership in advanced manufacturing – at the same time, we will rebuild a stable path to the middle class.”

The New Jersey Economic Development Authority will administer the program. Eligible businesses in manufacturing industries including advanced manufacturing, non-retail food and beverage, defense, clean energy and life sciences can receive a tax credit award equal to the lesser of 0.1% of the eligible business’s total capital investment multiplied by the number of new full-time jobs, or 25% of the eligible business’s total qualified investment (subject to a total cap of $150 per project).

In the first two years, $100 million in tax credits will be reserved for clean energy product manufacturers in sectors such as solar, geothermal and green hydrogen.

Stackable bonuses are available to companies holding New Jersey Business Certifications, such as Minority and Women Business Enterprises, businesses located in Opportunity Zones, or companies that have collective bargaining agreements or labor harmony agreements in place.

After the first two years of the program, any unused proceeds will roll over into the general manufacturing allocation.

A critical time

The Next New Jersey Manufacturing Program comes at a critical time — amid a focus on onshoring and reshoring American manufacturing, which has become one of the few topics that brings the two political parties together.

Murphy recounted the state’s manufacturing heritage. He said that the story of American manufacturing is far from over. And is, in fact, at the dawn of a new era; pointing to MAC Products.  “Look no further than right here, a family-owned manufacturer with more than 60 years of history,” said Murphy. “Today, their technology powers NJ Transit, Amtrak, PATH, and mass transit systems across the country. And MAC Products employs a highly skilled, specialized workforce – of a caliber that you will only find in our region. And many of the company’s tremendous employees are here with us today.

“And … many of them have been here for a long time – measured in decades. For some of you, your adult children have followed in your footsteps and are now pursuing their own careers right here. Your stories prove that the promise of good-paying, family-supporting manufacturing jobs is still very real in  New Jersey. And with the Next New Jersey Manufacturing Program, which today’s legislation will create, we’re going to make sure that more families get to live that promise – not just remember it fondly.”

Murphy noted that this program will incent companies around the globe – especially those facing the risk of new tariffs – to manufacture next-generation products, such as cutting-edge pharmaceuticals and renewable energy components, right here in the Garden State.

“And beyond attracting global investment, this program will help local companies grow, create jobs, and unleash a more prosperous future for our children,” said Murphy.

Rooted in NJ

MAC Products President Eddie Russnow spoke about his company’s history, roots and growth in Jersey.

“We have been doing this now for over 60 years. My father-in-law, who’s in the audience today, is the founder. He started this business 60 years ago,” said Russnow of Ed Gollob. “And sitting next to him is my son, Henry. So, he’s the third generation of the business, which as my wife tells me – he’s my retirement plan.

“Our company started with three people when my father-in-law started the business. And at that time, all we were doing were making lugs and connectors, which are used to terminate wires and cables for electrical power products,” Russnow explained. “But over the years, this company has evolved tremendously, as you can see from this heavy technical product that we currently manufacture. And this is just one of about 14 different verticals or product lines that we design, manufacture – and, in some cases, maintain for our customers.”

Russnow stressed the company’s strong commitment to the Garden State.

“As I said before, we’ve been here for 60 years – and we plan to be here for a minimum of 60 more,” he said. “This is why we have multiple generations of the family in the business. And it’s truly not just our family that has multi-generations in this business.”

‘Ought to be a no-brainer’

Among the various officials, business leaders and lawmakers on hand, the spirit of bipartisanship – and even nonpartisanship – was on full display.

“This is a really important piece of legislation – and again, as the governor noted, bipartisan – almost nonpartisan,” said NJEDA Chief Executive Officer Tim Sullivan. “For the notion that American manufacturing, Jersey manufacturing ought to be a no-brainer. And I think under this governor’s leadership; really strong support from the Manufacturing Caucus, this is not a new theme.”

Sullivan noted the investment of more than $66 million for the New Jersey Manufacturing Voucher Program as an example of the administration’s focus in this sector.

“But with this bill today, we’re just getting warmed up. It’s going to make the Manufacturing Voucher Program look like the early innings. Half a billion dollars of capital deployed to the manufacturing sector – that’s going to help create thousands more new manufacturing jobs, on top of that first 7,000 or so under this governor’s leadership,” said Sullivan. He stressed that as with all of the NJEDA’s tax credit programs, the companies need to stick to their commitments. “If you promise you’re going to do something, and you do it, you get the tax credits. If you don’t – you don’t get the tax credits. This is money on the table that encourages and incentivizes people to make the investments that they want to make, particularly in this context – manufacturers.”

At the bill signing, officials noted how quickly they planned to ramp the program up. In August, the NJEDA sought public input on draft rules, which it will present to the NJEDA board for review and consideration for approval. If approved, the rules will be published in the New Jersey Register for formal public comment.

‘Upward mobility’

Sen. Mike Testa, R-1st District, co-chair of the Manufacturing Caucus, was a prime sponsor of the bill. “I stand before each and every one of you extremely grateful today,” Testa said at the ceremony. “The people want to see government work. This is a prime example of government actually working on a nonpartisan basis – not a bipartisan basis.”

As Testa thanked the officials gathered for their efforts in getting this legislation over the finish line, he recounted a story about a woman he met in Atlantic City after he had given a speech about manufacturing.

This is a prime example of government actually working on a nonpartisan basis – not a bipartisan basis.
– Sen. Mike Testa, R-1st District

“And she said – ‘my two sons don’t need jobs,’” Testa recounted, asking her what she meant. “She said – ‘my two boys need careers.’ And I take a look at the people that work at MAC – and they’re here for over two decades. And I look at manufacturing – they are careers with extreme upward mobility.

“Manufacturing is important. And lord knows the governor and I don’t agree on a whole lot,” said Testa, who has been critical of the administration. “But we’re friends and we respect each other. And one of the aspects that Gov. Murphy has knocked it out of the park is in advanced manufacturing. Otherwise, we would not be here today.”

Testa spoke about a picture he has hanging in his office of the infamous “Trenton Makes – The World Takes” sign.

“This bill will go a long way to making sure that means something once again – and remains meaning something 50, 60, 75 years to come,” said Testa. “And this bill goes a long way to ensure that.”

Murphy added after Testa spoke, “And I would echo something Michael said – we’re not going to agree on a whole list of stuff. People would be shocked how close the two of us are privately. And that’s, I hope, a good lesson that just because you disagree on a bunch of stuff doesn’t mean you can’t find common ground in fellowship.”

‘Powerful example’

Sen. Linda Greenstein, D-14th District, co-chair of the Manufacturing Caucus, was also a prime bill sponsor. “This is a wonderful day to be here in New Jersey,” said Greenstein. “We do a lot of legislation, but we don’t always do a piece of legislation as wonderful as this one.”

She noted how much she has learned about manufacturing and its importance in the state over the years – from her late husband’s career in the field to learning from Peter Connolly and John Kennedy at the New Jersey Manufacturing Extension Program.

We do a lot of legislation, but we don’t always do a piece of legislation as wonderful as this one.
– Sen. Linda Greenstein, D-14th District

“I remember the first time I went to an MEP meeting – and I truly didn’t realize that manufacturing was as prevalent in the State of New Jersey as it is. And I was shocked to hear about the large numbers of companies and all the different things that are being manufactured right here in New Jersey,” said Greenstein. “So, I think we can serve as a national model because we don’t really have to bring it back.

“We have it here. And this program will help us to really keep up the great work that New Jersey does in manufacturing. I look forward to seeing this bill in action.”

U.S. Rep. Rob Menendez, D-8th District, said, “The Next New Jersey Manufacturing Program is a powerful example of how our state is leading the way on creating good jobs and investing in local businesses. Manufacturing is a vital part of our economy and I’m grateful to Gov. Murphy and our partners in state government for prioritizing this initiative.”

Building the workforce

Business leaders across the state applauded the new program, many of whom were on hand for the bill signing in Kearny.

“NJMEP is prepared to stand alongside NJEDA and every business this program attracts to offer targeted training, consulting, and workforce development,” said NJMEP Chief Executive Officer Connolly. “With this robust support in place, this $500 million incentive can translate into real high-quality jobs and tangible economic opportunity for the people of New Jersey.”

New Jersey Business & Industry Association President and CEO Michele Siekerka said the law represents a significant and targeted investment for New Jersey’s manufacturing sector and the economy — with no additional funding required.

“It will support much-needed workforce development in manufacturing amid both federal tariff and supply chain uncertainty that challenges these important businesses,” said Siekerka. “And it will incentivize a wide range of manufacturing activities, including advancing manufacturing, food and beverage production, life sciences, defense, and clean energy component manufacturing.

“NJBIA thanks Gov. Murphy for signing this important bill into law, as well as the overwhelming bipartisan support within the Legislature. Let’s get to work.”

Growing the industry

Tom Bracken, New Jersey Chamber of Commerce president and CEO, said this investment reflects the state’s commitment to supporting growth in manufacturing.

“The Next New Jersey Manufacturing Program aims to encourage innovation, attract new industries, and expand career opportunities in the state,” said Bracken. “By combining targeted tax incentives with the strengths of our workforce, we’re creating a stronger environment for businesses to build and grow in the Garden State.”

“New Jersey’s manufacturers are the backbone of our economy, and this program provides the kind of bold, targeted investment needed to keep them competitive in a rapidly changing economic landscape,” said Christina Renna, president and CEO, Chamber of Commerce Southern New Jersey. “By prioritizing innovation, job creation, and in-state capital investment, the Next New Jersey Manufacturing Program sends a clear message: our state is serious about building things here at home and supporting manufacturers up and down the state.”

Made in NJ

“As the ‘Medicine Chest of the World,’ New Jersey relies on a strong manufacturing ecosystem to produce highly advanced technologically sophisticated, and life-saving biopharma and medical device products,” said Chrissy Buteas, CEO, HealthCare Institute of New Jersey. “These products – from cell and gene manufacturing to complex metallurgic bone mesh implants to radioligand therapeutic products – are made in New Jersey because of our skilled, well-trained workforce and incentives like the Next New Jersey Manufacturing Program Act.”

Russnow added, that as a family business that lives by the motto “We Don’t Do Easy,” his company understands the importance of resilient, in-state manufacturing capacity.

“The Next New Jersey Manufacturing Program will propel local investment, fuel job creation, and reinforce the innovation and integrity at the heart of our operations – and the operations of manufacturers across the state.”